Motherson Sumi Systems shares gained as much as 1.86 per cent on Monday after it informed bourses that the company has raised Rs 1,993.44 crore through issuance of 62,884,827 shares to qualified institutional buyers (QIBs). The company’s qualified institutional placement (QIP) issue opened on September 8 and closed on September 13 for receiving applications from investors. For the QIP, 62,884,827 shares were issued to qualified institutional buyers at an issue price of Rs 317 after giving a discount of 2.79 per cent.
At 9.55 am, shares of the company were trading 1.37 per cent up at Rs 322.90. The scrip opened the day at Rs 320.20 and has touched a high and low of Rs 324.45 and Rs 318.55, respectively, in trade so far. Later, the share price of the company ended 0.57 per cent up at Rs 320.35.
Furthermore, an allotment of 17,762,460 shares of face value of Rs 1 each has been made in favour of Sumitomo Wiring Systems (SWS) at the issue price of Rs 317 per share aggregating around Rs 563.07 crore. Post this preferential allotment and the one under QIP, SWS shareholding continues to remain above 25 per cent.
Mother Sumi Systems will use the net proceeds of the issue for meeting general corporate purposes and for achieving the objective of MSSL’s five-year plan ‘Vision 2020’. The company aims to have revenues of $18 billion by 2020.
Motherson Sumi Systems is one of the leading manufacturer of automotive wiring harnesses, mirrors for passenger cars and a leading supplier of plastic components and modules to the automotive industry.